Advantages And Disadvantages Of Commercial Banks
3. WAY FORWARD:
Since so many multi-dimensional changes are taking place in the Indian economy which are revolutionizing the way in which banking transactions occur, financial inclusion is a major challenge. MFI were set up to support the financial inclusion effort of the govt. Due to demonetization, increased competition and increased use of technology, MFI need to reinvent ways in which they conduct their business to survive.
So some of the options available with MFI are listed below:
- Acquisition of MFIs by banks/convergence/alliances between banks and MFI:
There is a clear cut distinction between commercial banks and MFIs as per the current regulation. But both have mutual benefit MFIs are acquired by the banks or MFIs act as business correspondent of large banks such as MFI can benefit by getting access to low cost of funds, can get access to new technology which may improve their efficiency and lending and collection processes.
On the other hand, large banks may benefit by getting access to the rural markets where they have low network and could aid in achieving the financial inclusion objective of the government. So this could be the win-win situation for the government. Also it will help MFI survive as they would be able to offer banking products to their customers in addition to giving small loans for a fee.
- Consolidation within MFI industry:
Larger MFIs with healthy financials i.e. balance sheet and income can acquire small and medium sized MFIs to get strong
The Fdic Pros And Cons
136 Words | 1 PagesFDIC, which stands for Federal Deposit Insurance Corporation, was formed in 1933 after the bank failures during the 20’s. The FDIC provides insurance for deposits at banks. The FDIC can provide up to $250,000 in insurance for deposits per bank. SSA, Social Security Administration, was created in 1935 and provides social security benefits like retirement and disability benefits. TVA, Tennessee Valley Authority, was created to provide electricity, flood control, and economic development to the region known as the Tennessee Valley.
Federal Reserve System Pros And Cons
548 Words | 3 PagesThe Federal Reserve system is the central bank of all United States. The Fed, as it is commonly known, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, DC, the Board of Governors and 12 regional Federal Reserve Banks in major cities throughout the United States. (Staff, I., 2016) Their job is to make sure the money supplies grows to quickly or to slowly, monetary policy is used to help with the flow.
The Controversy Of The Bank War
411 Words | 2 PagesThe banking controversy of the 1830’s became known as The Bank War. It was a campaign started by Andrew Jackson in 1833 to destroy the Second Bank of the United States. He believed that his opposition to the bank had won him national support during his reelection campaign. The Second Bank had been created in 1816 as a successor to the First Bank, whose charter had previously expired. The Second Bank was chartered only for a term of twenty years due to the concerns of many people in Congress.
Pros And Cons Of The House Of Representives
829 Words | 4 PagesThis bank could also help benefit the government to use it
The Pros And Cons Of The Federal Reserve System
1014 Words | 5 PagesIntroduction The central bank of the United States was founded by Congress to provide a safe, flexible and stable monetary and financial system. The Federal Reserve carries out the nation’s monetary strategy guided by the goals set forth in the Federal Reserve Act, namely "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. " The central bank, also known as the Federal Reserve System is made of a central governmental agency in Washington, DC, the Board of Governors and 12 regional Federal Reserve Banks in major cities throughout the United States. Body
Pros And Cons Of The Federal Reserve System
855 Words | 4 PagesIndependence After much thought and consideration, I do think that the Federal Reserve System should be free of politics and political pressure. The positions that the Federal Reserve Board Members hold is a ginormous responsibility. Obviously, they play a HUGE role in our economy, and many may argue that that they hold too much power, but I disagree with that.
Federal Reserve Bank Pros And Cons
119 Words | 1 PagesThe Dollar bill has no value since the Federal Reserve act was signed by President Woodrow Wilson December 23,1913. The Federal Reserve Bank is a private Institution. It is not government owned or operated. It is not "owned" by anyone. It is the nations central bank and get 's it authority from the Congress of the United States.
The Pros And Cons Of Shadow Banking
963 Words | 4 PagesTraditionally, credit intermediation between savers and borrowers is executed in a single institution, a bank, which collects deposits and provides loans. First, such activity involves
Credit Unions Vs Commercial Banks
979 Words | 4 PagesBanks date back all the way to ancient times where merchants made grain loans to farmers and traders who carried goods between cities. Today they serve a similar purpose. A major event in banking history is the wall street crash that led to approximately 9,000 banks to close, resulting in the great depression that lasted from 1929 to 1939. A commercial bank is a type of financial institution that provides services such as accepting deposits, making business loans, and offering basic investment products.
The Pros And Cons Of Credit Unions
435 Words | 2 PagesMy dad has been teaching me the benefits of saving money and the disadvantages of spending money since I hardly knew what a dollar was. I’m 31 years old and to this day, I still get told what to do with my money. When I was 16 years old, I attained my first job. Soon after, whether it was because I was spending all my money on “cool” car parts or my dad just wanted to show me early how to save money, he took me to a local credit union to become a member and since then, I’m a member of the same credit union, and two banks.
Bottled Water Competitive Analysis
1277 Words | 6 PagesCompetitive Analysis The four major players in the bottled water industry include PepsiCo, Inc., Nestle, and The Coca-Cola Company. In 1987, PepsiCo Inc. attempted to enter the bottled water market but was unsuccessful until 1997 when they introduced Aquafina. In 1992, Nestle Waters acquired Perrier and became the world’s largest seller of bottled water.
Swot Analysis For Ssnc
1434 Words | 6 PagesLong SSNC, Price Target $49, 46% Upside, 24% IRR Over 3 Years. Summary Value accretive roll-up company that buys assets at ~11x EBITDA pre-synergy, ~7x EBITDA post-synergy, that is trading at trough multiple. SSNC has a decent runway of organic growth driven by 3rd party private equity FA and regulatory demand.
Benefits Of Mergers And Acquisitions
1178 Words | 5 PagesIntroduction Mergers and Acquisitions form part of corporate restructuring. So does amalgamation, takeovers, spin offs, leveraged buyouts, buyback of shares, capital reorganization, sale of business units and assets etc. Mergers and Acquisitions are the most popular means of corporate restructuring. They have played an important role in the external growth of a number of companies in the world. The basic purpose of corporate restructuring is to enhance the shareholder value.
Essay Describe Two Major Ways In Which A Company Can Grow
976 Words | 4 PagesGrowing A Company Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Introduction When companies are experiencing success, they want to grow so they can continue succeeding. The larger they get, the more profit they will be able to achieve.
Strengths And Weaknesses Of The Banking Industry
976 Words | 4 PagesI would frame the banking as an industry that is built on trust. Trust that is reaffirmed by the governments, and regulators. Banks have an imperative role in our economic growth, and development. Correspondingly, without the bank industry, there is no industry to replace them as the conduit for social and economic policy. Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect.
More about Advantages And Disadvantages Of Commercial Banks
The Fdic Pros And Cons
136 Words | 1 PagesFederal Reserve System Pros And Cons
548 Words | 3 PagesThe Controversy Of The Bank War
411 Words | 2 PagesPros And Cons Of The House Of Representives
829 Words | 4 PagesThe Pros And Cons Of The Federal Reserve System
1014 Words | 5 PagesPros And Cons Of The Federal Reserve System
855 Words | 4 PagesFederal Reserve Bank Pros And Cons
119 Words | 1 PagesThe Pros And Cons Of Shadow Banking
963 Words | 4 PagesCredit Unions Vs Commercial Banks
979 Words | 4 PagesThe Pros And Cons Of Credit Unions
435 Words | 2 PagesBottled Water Competitive Analysis
1277 Words | 6 PagesSwot Analysis For Ssnc
1434 Words | 6 PagesBenefits Of Mergers And Acquisitions
1178 Words | 5 PagesEssay Describe Two Major Ways In Which A Company Can Grow
976 Words | 4 PagesStrengths And Weaknesses Of The Banking Industry
976 Words | 4 Pages